Latest news with #HBM3E
Korea Herald
2 hours ago
- Business
- Korea Herald
SK hynix overtakes Samsung to lead global memory market for 1st time with HBM surge
SK hynix has claimed the top spot in the global memory chip market for the first time, overtaking long-time leader Samsung Electronics on the back of its dominance in high bandwidth memory chips, the highly lucrative artificial intelligence products. According to market tracker Counterpoint Research on Thursday, SK hynix recorded 21.8 trillion won ($15.6 billion) in memory sales, including both DRAM and NAND products, in the April-June period, narrowly surpassing Samsung's 21.2 trillion won. SK hynix also hit an all-time high quarterly operating profit of 9.2 trillion won from its chip sales alone. This is almost double Samsung's total operating profit of 4.6 trillion won across all segments, including smartphones, consumer electronics, memory, logic chips and contract chipmaking. SK hynix' rise is largely attributed to its leadership in the fast-growing HBM memory chips, a critical component for AI processors. Since becoming a key supplier of cutting-edge HBM chips to Nvidia, the world's largest graphic processing unit supplier, the memory chip maker has seen a consistent increase in profitability, while Samsung's earnings have been on a downward trend, reflecting its weaker position in the HBM market. According to Counterpoint's Memory Tracker, Samsung's share of HBM shipments plummeted to 17 percent in the second quarter of this year from 41 percent a year earlier, trailing behind SK hynix and US-based Micron Technology. SK hynix accounted for 62 percent of global HBM shipments, followed by Micron with a 21 percent share. The decline in Samsung's share was attributed in part to US export restrictions to China introduced earlier this year, which limited the company's sales channels. As SK hynix is seeing soaring sales by supplying Nvidia with its most advanced 8-layer and 12-layer HBM3E products, Samsung is struggling to pass the GPU maker's qualification tests and remains largely dependent on older-generation HBM3 chips for its HBM sales. 'The good news is that Samsung's HBM sales appear to have bottomed out in (the first quarter of) 2025 and are showing signs of recovery in (the second quarter),' Choi Jeong-ku, Counterpoint Research analyst, said. 'To regain lost market share, however, it is critical for Samsung to diversify its HBM3E customer base and pass Nvidia's stringent quality tests.' Choi also noted that Samsung should focus on achieving stable yield levels to supply next-generation HBM4 for Nvidia's upcoming Rubin platform. "Considering the recent announcement that Samsung Foundry has won orders from Tesla, there is growing expectation for an overall improvement in Samsung's future performance," Choi added.
Hindustan Times
19 hours ago
- Automotive
- Hindustan Times
Samsung gains momentum with Tesla tie-up, tariff agreement reduces uncertainty
Samsung Electronics said a trade deal between South Korea and Washington will help to alleviate business uncertainty, as the technology giant forecast more major chip orders after signing a $16.5 billion deal with Elon Musk's Tesla. Samsung sees relief from US tariff deal, expects boost from $16.5B Tesla chip order.(Bloomberg) U.S. President Donald Trump said the U.S. will charge a 15% tariff on imports from South Korea as part of the deal that eases, for now, tension with a top-10 trading partner and key Asian ally. Imports from South Korea, a powerhouse exporter of computer chips, cars and steel, had faced a 25% rate. The tariff deal comes days after Tesla said it had signed a deal to source chips from Samsung, a move that analysts said could help the tech giant's struggling contract business. "Building on this milestone, we anticipate securing additional orders from large customers," Samsung Vice President Noh Mi-jung said on an earnings call, referring to its struggling contract chipmaking business. Samsung's new U.S. semiconductor factory in Texas, which is expected to make chips for Tesla, is on track to begin production in 2026, she said. "The key to the Tesla order is how much Samsung would be able to address production yield issues for its advanced 2 nanometer chips," said Greg Roh, head of research at Hyundai Motor Securities. The Texas project is central to Samsung Chairman Jay Y. Lee's strategy of expanding beyond its bread-and-butter memory chip business into high-end contract chip manufacturing, which is dominated by Taiwan's TSMC. Noh's comments came after the company posted 4.7 trillion won ($3.37 billion) in operating profit for the April-June period, its weakest earnings in six quarters. That was roughly in line with an earlier estimate that had disappointed investors. The South Korean tech giant forecast a gradual second-half recovery for its overall business, without providing further details. Second-quarter operating profit at its chip division plunged 94% from a year earlier, it said, hurt by delays in supplying the latest AI chips to Nvidia and U.S. export curbs on advanced semiconductor sales to China. Focus on AI chips Prolonged weakness in Samsung's performance has deepened investor concerns over the South Korean company's ability to catch up with smaller rivals like SK Hynix in developing high-bandwidth memory (HBM) chips used in AI data centres and sold to customers including Nvidia. Last October, Samsung said it was making progress on a major deal to supply HBM3E chips to an unidentified customer that analysts said was Nvidia. Samsung on Tuesday did not give an update to the plan, while warning that the supply of HBM3E chips has been growing faster than demand, which would affect pricing. The tech giant said it has also provided samples of its next-generation HBM4 chips to customers, with a plan to supply them next year. Customers for this chip are also expected to include Nvidia, analysts said. Samsung said on Thursday it expected the industry environment would improve in the second half of the year, driven by AI chip demand due to continued investments by major cloud service providers. Meta Platforms and Microsoft on Wednesday pointed to strong AI chip demand and major investments in data centres in their earnings announcements. Samsung said there were also some concerns about slowing global growth due to an uncertain trade environment and geopolitical risks. "We believe that the uncertainty has been reduced through the conclusion of negotiations between the United States and South Korea," Samsung Chief Financial Officer Park Soon-cheol said after Trump announced the trade deal. Park said Samsung was closely monitoring a U.S. national security probe into imports of semiconductors and electronics such as smartphones, tablets and PCs, which he said could have a significant impact on its businesses. Samsung's second-quarter revenue rose 0.7% to 74.6 trillion won, in line with its earlier estimate of 74 trillion won. Its chip division posted a profit of 400 billion won during the quarter, down from 6.5 trillion won a year earlier, marking the first time in six quarters the figure has dropped below the 1 trillion won mark. Samsung said in a statement inventory value adjustments to memory chips and one-off costs from the impact of U.S. export restrictions on sales to China on its contract chipmaking business lowered the division's profit. Samsung said smartphone demand, which had rebounded in the first half thanks to stockpiling ahead of U.S. tariffs and China subsidies, is expected to see slowing growth in the second half. For TVs, Samsung expected demand to slightly decline due to inflation and economic uncertainty in the second half from a year earlier. Shares of Samsung were down 1.8% in early afternoon trade, underperforming the benchmark KOSPI index, which was 0.5% lower. ($1 = 1,393.4100 won)
New Straits Times
a day ago
- Automotive
- New Straits Times
Samsung says tariff agreement reduces uncertainty, expects boost from Tesla deal
SEOUL: Samsung Electronics said a trade deal between South Korea and Washington will help to alleviate business uncertainty, as the technology giant forecast more major chip orders after signing a US$16.5 billion deal with Elon Musk's Tesla. US President Donald Trump said the US will charge a 15 per cent tariff on imports from South Korea as part of the deal that eases, for now, tension with a top-10 trading partner and key Asian ally. Imports from South Korea, a powerhouse exporter of computer chips, cars and steel, had faced a 25 per cent rate. The tariff deal comes days after Tesla said it had signed a deal to source chips from Samsung, a move that analysts said could help the tech giant's struggling contract business. "Building on this milestone, we anticipate securing additional orders from large customers," Samsung Vice President Noh Mi-jung said on an earnings call, referring to its struggling contract chipmaking business. Samsung's new U.S. semiconductor factory in Texas, which is expected to make chips for Tesla, is on track to begin production in 2026, she said. "The key to the Tesla order is how much Samsung would be able to address production yield issues for its advanced 2 nanometer chips," said Greg Roh, head of research at Hyundai Motor Securities. The Texas project is central to Samsung Chairman Jay Y. Lee's strategy of expanding beyond its bread-and-butter memory chip business into high-end contract chip manufacturing, which is dominated by Taiwan's TSMC. Noh's comments came after the company posted 4.7 trillion won (US$3.37 billion) in operating profit for the April-June period, its weakest earnings in six quarters. That was roughly in line with an earlier estimate that had disappointed investors. The South Korean tech giant forecast a gradual second-half recovery for its overall business, without providing further details. Second-quarter operating profit at its chip division plunged 94 per cent from a year earlier, it said, hurt by delays in supplying the latest AI chips to Nvidia and U.S. export curbs on advanced semiconductor sales to China. FOCUS ON AI CHIPS Prolonged weakness in Samsung's performance has deepened investor concerns over the South Korean company's ability to catch up with smaller rivals like SK Hynix in developing high-bandwidth memory (HBM) chips used in AI data centres and sold to customers including Nvidia. Last October, Samsung said it was making progress on a major deal to supply HBM3E chips to an unidentified customer that analysts said was Nvidia. Samsung on Tuesday did not give an update to the plan, while warning that the supply of HBM3E chips has been growing faster than demand, which would affect pricing. The tech giant said it has also provided samples of its next-generation HBM4 chips to customers, with a plan to supply them next year. Customers for this chip are also expected to include Nvidia, analysts said. Samsung said on Thursday it expected the industry environment would improve in the second half of the year, driven by AI chip demand due to continued investments by major cloud service providers. Meta Platforms and Microsoft on Wednesday pointed to strong AI chip demand and major investments in data centres in their earnings announcements. Samsung said there were also some concerns about slowing global growth due to an uncertain trade environment and geopolitical risks. "We believe that the uncertainty has been reduced through the conclusion of negotiations between the United States and South Korea," Samsung Chief Financial Officer Park Soon-cheol said after Trump announced the trade deal. Park said Samsung was closely monitoring a U.S. national security probe into imports of semiconductors and electronics such as smartphones, tablets and PCs, which he said could have a significant impact on its businesses. Samsung's second-quarter revenue rose 0.7 per cent to 74.6 trillion won, in line with its earlier estimate of 74 trillion won. Its chip division posted a profit of 400 billion won during the quarter, down from 6.5 trillion won a year earlier, marking the first time in six quarters the figure has dropped below the 1 trillion won mark. Samsung said in a statement inventory value adjustments to memory chips and one-off costs from the impact of US. export restrictions on sales to China on its contract chipmaking business lowered the division's profit. Samsung said smartphone demand, which had rebounded in the first half thanks to stockpiling ahead of US tariffs and China subsidies, is expected to see slowing growth in the second half. For TVs, Samsung expected demand to slightly decline due to inflation and economic uncertainty in the second half from a year earlier. Shares of Samsung were down 1.8 per cent in early afternoon trade, underperforming the benchmark KOSPI index, which was 0.5 per cent lower.
Hans India
a day ago
- Business
- Hans India
Samsung's Q2 net income drops nearly 50 pc due to sluggish chip biz
Seoul: Samsung Electronics said on Thursday that its net income plunged nearly 50 per cent in the second quarter (Q2), as its semiconductor division logged its lowest earnings in over a year due to sluggish demand for high bandwidth memory (HBM). In a regulatory filing, the company reported a net income of 5.11 trillion won (US$3.7 billion) for the April-June period, down 48 percent from 9.84 trillion won a year earlier, reports Yonhap news agency. The earnings fell short of market expectations. The average estimate of net profit by analysts stood at 7.29 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. Operating profit stood at 4.67 trillion won, down 55.2 percent from a year ago, while revenue rose 0.7 percent to 74.56 trillion won. The semiconductor division posted 400 billion won in operating profit, the lowest since the fourth quarter of 2023, when it recorded a 2 trillion-won operating loss. Samsung Electronics attributed the weak bottom line in its chip division to one-off costs, such as inventory value adjustments. Despite a weak profit, chip sales climbed 11 percent on-year to 27.9 trillion won, driven by demand for premium server chips and increased foundry orders. Its main memory business posted stable growth, supported by sales of HBM3E products and memory for data centre servers. However, the fabless segment, or System Large Scale Integration (LSI), continued to struggle with low profitability, and the foundry business saw its profit worsen due to inventory adjustments linked to U.S. sanctions on artificial intelligence (AI) chip exports to China. Its DX division, which includes mobile, TV and home appliance businesses, saw its sales fall 16 percent on-year to 43.6 trillion won amid intensifying competition, while posting 3.3 trillion won in operating profit. The mobile unit recorded 29.2 trillion won in sales and 3.1 trillion won in operating profit, driven by steady sales of the Galaxy S25 series smartphones released in the first quarter. The TV segment improved sales of premium products, such as Neo QLED and OLED TVs, but overall earnings declined due to tepid demand and heightened competition. For the second half, Samsung Electronics said it expects a recovery in the global information technology market, led by AI and robotics, despite lingering concerns over trade uncertainties and geopolitical risks. The chip division plans to focus on meeting the growing demand for high-value-added and AI-driven products, such as HBM, and strengthening its competitiveness in advanced semiconductor technologies. It will also make efforts to increase sales of high-density and high-performance solid-state drives (SSDs) to keep up with rising demand for chips for AI data centres. The mobile division is expected to maintain momentum in the second half by focusing on its new foldable smartphones released earlier this month. Analysts expect Samsung Electronics' earnings to rebound in the second half.
Time of India
a day ago
- Automotive
- Time of India
Samsung says tariff agreement reduces uncertainty, expects Tesla deal to boost orders
Samsung Electronics said a trade deal that will see Washington charge 15% tariffs on imports from South Korea reduces uncertainty, as it forecast more major chip orders after signing a $16.5 billion deal with Elon Musk's Tesla . "Building on this milestone, we anticipate securing additional orders from large customers," Samsung Vice President Noh Mi-jung said of its struggling contract chipmaking business during an earnings conference call. Explore courses from Top Institutes in Please select course: Select a Course Category Samsung's new U.S. semiconductor factory in Texas, which is expected to make chips for Tesla, is on track to begin production in 2026, she said. The Texas project is central to Samsung Chairman Jay Y. Lee's strategy of expanding beyond its bread-and-butter memory chip business into high-end contract chip manufacturing, which is dominated by Taiwan's TSMC. Noh's comments came after the company posted 4.7 trillion won ($3.37 billion) in optrumperating profit for the April-June period, its weakest earnings in six quarters. That was roughly in line with an earlier estimate that had disappointed investors. Live Events The South Korean tech giant forecast a gradual second-half recovery for its overall business, without providing further details. Second-quarter operating profit at its chip division plunged 94% from a year earlier, it said, hurt by delays in supplying the latest AI chips to Nvidia and U.S. export curbs on advanced semiconductor sales to China. Samsung's deal with Tesla this week came just days ahead of a much-anticipated tariff agreement with Washington announced by President Donald Trump on Wednesday that for now eases tensions with a top-10 U.S. trading partner and key Asian ally. Focus on AI chips Prolonged weakness in Samsung's performance has deepened investor concerns over the South Korean company's ability to catch up with smaller rivals like SK Hynix in developing high-bandwidth memory (HBM) chips used in AI data centres sold to customers including Nvidia. Last October, Samsung said it was making progress on a major deal to supply HBM3E chips to an unidentified customer that analysts said was Nvidia. Samsung warned on Thursday that the supply of HBM3E chips has been growing faster than demand, which would affect pricing. The tech giant said it has provided samples of its next-generation HBM4 chips to customers, with a plan to supply them next year. The customers are expected to include Nvidia, analysts said. Samsung said on Thursday it expected the industry environment would improve in the second half, driven by AI chip demand due to continued investments by major cloud service providers. Meta Platforms and Microsoft on Wednesday pointed to strong AI chip demand and major investments in data centres in their earnings announcements. But Samsung said there were also some concerns about slowing global growth due to an uncertain trade environment and geopolitical risks. "We believe that the uncertainty has been reduced through the conclusion of negotiations between the United States and South Korea," Samsung Chief Financial Officer Park Soon-cheol said after Trump announced the trade deal. Park said Samsung was also closely monitoring a U.S. national security probe into imports of semiconductors and electronics such as smartphones, tablets and PCs, which he said could have a significant impact on its businesses. Samsung's second-quarter revenue rose 0.7% to 74.6 trillion won, in line with its earlier estimate of 74 trillion won. Its chip division posted a profit of 400 billion won during the quarter, down from 6.5 trillion won a year earlier, marking the first time in six quarters that the figure has dropped below the 1 trillion won mark. Samsung said in a statement that inventory value adjustments to memory chips and one-off costs from the impact of U.S. export restrictions on sales to China on its contract chipmaking business lowered the division's profit. Shares of Samsung were down 1.8% in early afternoon trade, underperforming the benchmark KOSPI index, which was 0.5% lower. ($1 = 1,393.4100 won)
